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2015 (7) TMI 598 - AT - Income TaxDisallowance u/s. 14A r.w. Rule 8d - CIT(A) deleted addition - assessee into shipping business - Held that:- In view of the precedent dated 30.11.2011 [2011 (11) TMI 370 - ITAT MUMBAI ], we find that the impugned disallowance made by the Assessing Officer has been rightly deleted by the CIT(A) wherein held that if at all the assessee has claimed any such expenditure in computation of profit of business of shipping, the same are to be taken as disallowed when the income of the said business is finally computed in accordance with the provisions of Chapter XIIG and no separate disallowance on account of such expenditure u/s 14A can be made. We, therefore, delete the disallowance made by the AO u/s 14A and confirmed by the CIT(Appeals). - Decided in favour of assessee. Addition of Impairment loss on certain ships to the book profit of the Appellant u/s l15JB - Held that:- Quite clearly, the impugned addition of Impairment loss on certain ships by the Assessing Officer for the purposes of determining the Book Profit of the assessee company u/s 115JB of the Act related to the activities of a tonnage tax company and it is also not disputed by the Revenue that such amount was reduced by the assessee while computing the ‘Book Profits’ from the activities of a tonnage tax company. Therefore, if the stand of the Assessing Officer is to be upheld then similar amount ought to be added back for the purposes of computing Book Profits derived from the activities of a tonnage tax company, because such book profit from the activities of a tonnage tax company are liable for exclusion from the ‘Book Profits’ for the purposes of section 115JB of the Act, in view of the specific enactment contained in section 115VO of the Act. Therefore, we find it expedient to set aside the impugned order of CIT(A) on this aspect and direct the Assessing Officer to make adjustment for the Impairment loss in the Book Profit derived from the activities of a tonnage tax company also; and the so computed book profit shall be liable to be excluded from the Book Profits of the assessee company for the purposes of section 115JB of the Act, in view of section 115VO of the Act. - Decided in favour of assessee. Enhancing the Book Profit u/s 115JB on account of the disallowance made u/s 14A - Held that:- The amount disallowed u/s 14A of the Act cannot be considered while computing the book profit u/s 115JB of the Act. In the absence of any decision to the contrary brought out by the Revenue, we decide the issue in favour of the assessee following the aforesaid precedent. i.e Goetze (India) Pvt. Ltd. [2009 (5) TMI 615 - ITAT DELHI ] and M/s Bengal Finance & Investments Vs. The Asstt. Commissioner of Income-tax [2013 (5) TMI 117 - ITAT MUMBAI] - Decided in favour of assessee.
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